A unit of Japan’s Daiichi Life submitted an indicative proposal to Australian investment manager Challenger to buy the more than 79% of Challenger shares it does not already own, Challenger said on Oct 19, valuing the company at A$7.94 billion (S$7.08 billion).
Under the proposal, the Japanese insurer is offering A$11.80 apiece, representing a premium of 19.8% from Challenger’s last close on Oct 16.
The unit, TAL Daiichi Life Australia Pty, holds 20.36% of the Australian investment manager, according to LSEG. The takeover proposal is subject to a number of conditions including satisfactory completion of due diligence, Challenger stated.
“The Board of Challenger is considering the indicative offer,” the Australian firm added in its statement. REUTERS
